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Suppose that shares of firm A ( it does not pay dividends ) are trading at $ 2 5 per share. The ROA and ROE,
Suppose that shares of firm A it does not pay dividends are trading at $ per share. The ROA and ROE, based on book values, are and respectively. The firms equity beta is tax rate is it has million shares outstanding, total debt outstanding is $ million it just issued bonds paying interest semiannually at per year and having a yield to maturity of per year Oneyear risk free Treasuries are yielding an annual return of Investors expect the stock market to return per year. What is the firms WACC, weighted average cost of capital?
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